Kentucky Property and Casualty License Practice Exam

Liability insurance is designed to protect individuals or businesses from legal responsibility for injuries or damages they cause to other people or their property. This type of insurance specifically covers the costs associated with injuries to others that result from the insured's actions or negligence. For instance, if a person accidentally causes bodily harm to another person during an incident, or if they damage someone else's property, liability insurance would cover the medical expenses or repair costs incurred by the injured party.

The other options refer to different types of coverage that are not included under liability insurance. Damage to one's own property is typically covered by a property insurance policy, while damages resulting from natural disasters generally require specific coverage within a policy that addresses such events, like homeowners or flood insurance. Intentional damage inflicted by the insured is typically excluded from liability coverage because it involves willful misconduct rather than an accident. Thus, option B is the accurate reflection of what liability insurance covers.